Download and Read Kolstad Intermediate Environmental Economics Solutions Kolstad Intermediate Environmental Economics Solutions Introducing a new hobby for other people may inspire them to join with you

Environmental Economics I offers an introduction to these key themes and provides in-depth coverage of the economic foundations of environmental policy, the question of instrument choice, and the economic consequences of environmental policy. The cou

This course examines how environmental problems and their solutions can be modelled with microeconomic tools. We will talk about market failures, market solutions, and the incentives humans and societies face when making their decisions to degrade or to protect the environment, in particular air, water, climate and biodiversity. We will survey a) how to calculate the benefits and costs of environmental problems and policies, b) how benefit-cost analysis determines the optimal level of environmental quality (and why markets left to themselves usually do not generate that optimal level), and c) the economic principles behind different environmental policies such as command-and-control, green taxation, cap-and-trade, information programs and negotiations. Throughout the module we will use economic experiments to highlight the role of incentives and institutions. By the end of the week students should be able to  understand how the core principles of economics apply to environmental issues  comprehend the virtues and limitations of markets and allocations through prices  appreciate the role of benefits and costs in (environmental) decision-making processes of individuals and societies  understand that many environmental problems are due to wrongly set incentives

TOPICS AND TENTATIVE SCHEDULE All papers (other than the book chapters) are available on https://sites.google.com/site/environmentaleconbochum2015/readings. + readings for daily Focus Questions C other readings covered in class * denotes reading primarily for Master students # optional interesting reading that might help understand the material better) This looks like a lot of readings, but many papers are either short or only optional or for Master students only. - Before each day make sure to read the papers for the daily Focus Questions (marked with +) and skim the relevant chapters from the Kolstad book. - If you still have time before the course or between classes read the abstracts and look at the Figures of the other papers covered in class (marked with C). - The papers primarily for Master students (marked with *) will help them study for their final exam and are optional for Bachelor students. - Finally, the papers marked with # are optional and not relevant for the final exam (unless something from these papers is covered in class), but they might help understand the material better, and they might also provide some ideas the paper and for future research of those students who are interested in pursuing environmental economics beyond this class. Monday, August 3 How Economists See the Environment Short Background Readings: Oates (2006+), Fullerton and Stavins (1998+) Kolstad: chapters 1, 2 Market Experiments Basic Supply-Demand Model of Externalities and Policies Journal Article: Plott (1983C) Short Background Reading: Sedjo (1994C) Kolstad: chapters 3, 4 Distributional Effects of Environmental Policies Short Background Reading: Fullerton (2011C) Tuesday, August 4 Public-Good Experiments The Public-Good Model of Environmental Problems and Policies Journal Articles: Fischbacher et al. (2001+), Kroll et al. (2007*), Kotchen and Moore (2007#) Kolstad: Chapter 5 Valuation Experiments Valuation of Environmental Improvement: Cost-Benefit Analysis, and WTP vs WTA Journal Article: Shogren et al. (1994+) Background Reading on Environmental Justice: Banzhaf (2012C) Kolstad: chapters 6, 7

Journal Article: Metrick and Weitzman (1998+), Ferraro et al. (2012C) Ferraro and Simpson (2002#), Busch (2013#), Polasky et al. (2014*) Catch- and Wrap-Up, talk about the paper and the exam Friday, August 14 Exam Paper due (for questions about exam and/or paper I will be available through email and Skype from April 10-13, 17h-20h)

LITERATURE: During the summer school, there will be relatively little time to prepare and recap the lectures. It is therefore essential to come prepared to the summer school by having read most of the reading in advance. At the beginning of each class there will be a short set of “Focus Questions” about one of the day’s readings (those denoted with +); at the end of each class there will be a short quiz with a few easy multiple-choice questions about that day’s material Textbook for background reading: Charles D. Kolstad, Environmental Economics, 2nd edition. Oxford University Press. 9780199732647 Readings for the Focus Questions (+): Oates, Wallace (2006). An Economic Perspective on Environmental and Resource Management: An Introduction. In: Oates WE (Ed). The RFF reader in environmental and resource policy. Washington, DC: Resources for the Future, xv-xx. Fullerton, Don and Robert Stavins (1998). How Economists See the Environment. Nature 395, 6701, 433-434. Fischbacher, Urs, Simon Gächter and Ernst Fehr (2001). Are People Conditionally Cooperative? Evidence from a Public Goods Experiment. Economics Letters 71, 397-404. Shogren, Jason F., Seung Y. Shin, Dermot J. Hayes, and James B. Kliebenstein (1994). Resolving Difference in Willingness to Pay and Willingness to Accept. American Economic Review 84/1, 255-270. Carson, Richard T. (2000). Contingent Valuation: A User’s Guide. Environmental Science and Technology 34, 1413-1418. Videras, Julio and Anna Alberini (2000). The Appeal of Voluntary Environmental Programs: Which Firms Participate and Why? Contemporary Economic Policy18/4, 449-461. Harrington, Winston and Richard D. Morgenstern (2004). Economic Incentives versus Command-and-Control. Resources 152, 13-17. Metrick, Andrew and Martin L. Weitzman (1998). Conflicts and Choices in Biodiversity Preservation. Journal of Economic Perspectives 12/3, 21-34. Other Readings Covered in Class (C): Plott, Charles (1983). Externalities and Corrective Policies in Experimental Markets. Economic Journal 93, 106-127. Sedjo, Roger A. (1994). The Global Environmental Effects of Local Logging Cutbacks. Resources 117. Fullerton, Don (2011). Perspective: Six Distributional Effects of Environmental Policy. Risk Analysis 31/6, 923-929.